- Gold could fall below the $ 1,800 level this year, according to Morgan Stanley.
- Weak inflation and the global economic recovery could weaken demand for the yellow metal.
Analysts at investment banking giant Morgan Stanley predict that the Gold will fall below $ 1,800 per ounce by the end of 2021as rising inflation is likely to be tepid at best.
“Morgan Stanley economists predict that US inflation will rise a little over 2% over the next two years. So this is not the kind of runaway inflation scenario for which gold seems best suited.“Andrew Sheets, Morgan Stanley’s chief cross-asset strategist, said in a recent report, Kitco News reports.
Sheets added that gold’s momentum looks weak and signs of global economic recovery could further complicate matters for the safe-haven yellow metal.
Morgan Stanley predicts that the US economy will grow 6.5% this year, followed by 5% growth in 2022.
The Gold is currently trading at around $ 1,825 per ounce, which represents a drop of almost 4% so far this year. Prices hit a record $ 2,075 in August 2020.
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